IEEPA Tariffs Are Gone — Here's What Replaced Them

On February 20, 2026, the US Supreme Court ruled that the IEEPA tariff stack — the 'Liberation Day' reciprocal tariffs and the fentanyl-related tariffs imposed from April 2025 — exceeded the President's authority under the International Emergency Economic Powers Act. The entire IEEPA tariff regime (145% on China at its peak, 10–46% on other origins) was invalidated. Four days later a flat 10% surcharge under Section 122 of the Trade Act of 1974 replaced it; that expired on 24 July 2026 and was replaced by the forced-labor Section 301 tariff (10–12.5% on 60 economies).

Two things, one after the other. From 24 February to 24 July 2026 a flat 10% surcharge under Section 122 of the Trade Act of 1974 applied to nearly all imports. When its 150-day statutory limit ran out, USTR's forced-labor Section 301 tariff took over: 12.5% on China, Vietnam, Thailand, Türkiye and 34 other economies; 10% on 17 including India, Indonesia, Malaysia, the UK, Canada and Mexico; a combined 10% including MFN for the EU and Taiwan; and a combined 12.5% for Japan, Korea and Switzerland. Section 232 goods and USMCA-qualifying goods are exempt.

No. Section 122 allows a surcharge for at most 150 days unless Congress extends it. The 10% took effect on 24 February 2026 and expired at 12:01 a.m. on 24 July 2026. Before that, on 7 May 2026, the Court of International Trade had ruled it invalid — but only for the three importers who sued, and the Federal Circuit stayed that ruling. Today's replacement, the forced-labor Section 301 tariff, is itself being challenged by 25 states; CBP collects it in the meantime.

Yes, in most cases, and the clock is per entry. CBP refunds IEEPA tariffs through CAPE, a tool in its ACE system open since 20 April 2026: the importer of record or its broker uploads a list of entry numbers and is paid back with interest by ACH. CAPE takes an entry until 80 days after it liquidates; from day 81 to 180 only the protest period remains; after that the liquidation is final, and since 6 October 2026 CAPE Phase 3 refunds those entries only for importers who are plaintiffs at the Court of International Trade. Post-summary corrections cannot be used. See the refund guide at zentriaflow.com/ieepa-tariff-refund for the route that fits your entry. Section 122 duties paid between February and July 2026 are a separate question: they are refundable only if the appeal courts strike the surcharge down with broader effect, so keep your entry summaries (CBP Form 7501).

Today's stack for China-origin goods is: MFN base rate + Section 301 list rate (25% on Lists 1–3, 7.5% on List 4A, 0% on the suspended List 4B, up to 100% for a few four-year-review products) + the 12.5% forced-labor tariff + MPF (0.3464% of entered value, min $34.58 / max $670.86) + HMF (0.125%, ocean). Goods under Section 232 pay that instead of the forced-labor tariff. $10,000 of cotton T-shirts: 16.5% + 7.5% + 12.5% = $3,650 before fees. Enter your HTS code in Zentria Flow for the exact breakdown.

No. Tariffs follow the country of origin, not the route, and misdeclaring origin is a federal crime. CBP continues to investigate transshipment fraud aggressively (it still matters for Section 301, which is China-only) using manufacturer verification visits, supply chain audits, and trade data analysis. Penalties include seizure, fines at multiples of the duty owed, and criminal prosecution. The legal levers are real sourcing changes and the exemptions: USMCA-qualifying goods, Section 232 goods, and the Annex II product list.

Section 301 (Trade Act of 1974) tariffs followed a formal USTR investigation into China's trade practices — they are China-specific, 7.5%–25%, and remain fully in effect, including the suspension of List 4B (laptops, phones). The old IEEPA tariffs were emergency executive orders with per-country rates up to 145%; the Supreme Court struck them down in February 2026. Section 122 (also Trade Act of 1974) was the first replacement: a flat 10% surcharge capped at 150 days, which expired on 24 July 2026. The forced-labor tariff that replaced it is a second Section 301 action — so China-origin goods now carry two Section 301 duties, both stacked on the MFN base rate.